Problem 5-4A Adjusting entries and multi-step income statement-perpetu Use the unadjusted trial balance of Electric Bike on December 31, 2020, Credit Debit $ 7,200 21,765 33,700 1,965 965 5,155 64,590 $ 12,755 7,100 Cash Accounts receivable Merchandise inventory Store supplies Office supplies Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Braeden Li, capital Braeden Li, withdrawals Interest income Sales Sales returns and allowances Cost of goods sold Salaries expense Rent expense Supplies expense Depreciation expense, equipment Insurance expense Totals nces 156,295 57,500 220 524,500 4,170 380,260 95,400 28,200 0 0 0 $700,870 $790,870 Required: 1. Record adjusting entries for the following information. men ortimated to have a total estimated useful life of 10 21,765 33,700 1,965 965 5,155 64,590 $ 12,755 7,100 0 156,295 Accounts receivable Merchandise inventory Store supplies Office supplies Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Braeden Li, capital place! Braeden Li, withdrawals Interest income Sales ses Sales returns and allowances sales Cost of goods sold CO Salaries expense Rent expense Supplies expense Depreciation expense, equipment Insurance expense Totals 57,500 220 524,500 4,170 380,260 95,400 28,200 0 0 $700,870 $700,870 Required: 1. Record adjusting entries for the following information. a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $13,590. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $350 was unused at December 31, 2020. c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $1,730; a similar examination of the office supplies showed that $735 had been used. d. Accrued salaries payable, $1,350. e. A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $32,990. View transaction list 12 of 18